Hiring a Realtor to Sell your Home

The traditional strategy for selling a home involves hiring an agent to represent you. A seller will typically take his or her lead from this agent, a person with considerably more experience in matters of real estate. The agent, therefore, becomes the "point man (or -woman)" for almost all phases of the transaction. Let's take a look at what you'll get with a realtor in your corner.

Realtor pros

Quite simply, the job of a realtor is to help clients buy and sell real estate. The property could be a first or second home, an investment property or commercial real estate. Most realtors specialize in one or more of these types. They spend years learning the ins and outs of the industry and how to do their jobs well. Their knowledge and experience is often invaluable to their clients. For instance, those who handle the listings for million-dollar homes didn't get to that level overnight. They used their well-honed skills for taking market analysis reports and creating from them effective marketing plans to move properties under virtually any circumstances. Their instinct for the marketplace allows them to develop strategies to find buyers in almost any type of market conditions.

When selling a home, there will ultimately be many people involved in the proceeding before the final consummation of the deal. Of course, there's the seller and the potential buyer, along with their representatives (if they choose to use such). But don't forget about the appraisers, inspectors, repair people, mortgage lenders, attorneys, the escrow company and a few others that have roles to play along the way.

Realtors are used to working with these individuals and business entities on a regular basis. Over the years, they've figured out who's reliable among them and who is not. For example, they know which lenders deal best with clients that have marginal credit and those who are better for more standard mortgages. The realtor's network of professionals will help expedite various areas of the process for you, the seller.

When you sign an agreement for a realtor's services in selling your home, the realtor has a fiduciary responsibility to find the best offer for you. They will use comparative reports and/or appraisals to determine an asking price for your home. A marketing strategy will be employed that uses the best methods to increase buying traffic to your door for open houses and showings. And if you have any questions, the realtor is there to answer them. This isn't to say that the seller is totally without responsibility, but the burden is not nearly so bad with a realtor on hand to shoulder the complicated work. They'll direct you with 'to do' lists for home preparation, inspection readiness, and open house tips.

Realtor cons

Of course, there's a flip-side to virtually every argument. Realtors are professionals in the real estate industry and they are paid for their expertise. When a home is listed, the realtor contracts (as part of the realty company-home seller agreement) to receive a commission based on the property's final sale price. The commission can often be as much as six- or seven percent. Certainly, some people don't mind paying that amount for the services they'll receive, but what if the services are less-than-adequate? It goes without saying that all real estate agents are not the same. Some are less experienced than others and therefore may not get you the price you want. Others might even make mistakes that could cost you the whole sale. You could end up paying a commission for a not-very-well-done job.

When a homeowner is eager to sell, he or she will typically be drawn to agents that promise large selling prices and a short time on the market. Such agents are often trying to woo you away from other agents with inflated – and false – false hopes. Let's just say it flatly – they could be lying simply to get your business. No agent can promise a high price in any market. Certainly, a seller's market will make their job easier; but, nevertheless, it cannot i>guarantee anything. And, how well the realtor markets your home plays an important role in how long it stays on the market, but there can simply be no accounting for buyer fickleness.

Choosing an agent

Again, using an agent is the most common way to sell a property. The agent is there to facilitate the process and offer advice if needed. They can make suggestions, but it's the seller who has the ultimate say in how the selling plan is to be carried out.

Choosing the agent to represent you is the first step in a long process that will ultimately result in a buyer for your home. Needless, to say, you shouldn't want to settle for 'just any old agent.' How can you identify and avoid bad agents? For starters, research the agents in your area and get advice from friends or co-workers who have sold a home or other property in the fairly recent past. Going further, look carefully at what an agent has done, and not what they say. There are agents who will sell you the moon if you let them. The question that you must ask yourself is this: "Are they telling me the truth?" All the hype and flash could be concealing the fact that they haven't sold a home in two years.

A good agent is experienced. He or she has likely sold houses in many different price ranges, and has probably done so without the majority of them staying on the market for very long. These individuals are accredited by real estate organizations and are members of local and national associations for real estate agents.

Talk to several agents face-to-face. It's difficult to judge someone's true character from just a resume` only. How do they communicate? Is their manner open and honest or closed? Don't be shy about telling them a little bit about your situation and asking for marketing suggestions. A good agent can often use his or her expertise to offer tips right off the top of their head.

Getting your home ready

An agent can provide you with a checklist of things that need to be done in order for your home to be considered 'ready for sale.' The obvious things are a good cleaning from top to bottom and the removal of any unnecessary items. Everyone accumulates some amount of clutter, but buyers don't like to see it.

Staging is another option for further beautification after you've cleaned, mopped, dusted, and vacuumed the place silly. Stagers are professional artisans who can bring out the hidden aura – and possibly value – of a home. Their work can also include dressing the outdoor areas, as well. Your agent can suggest stagers in your price range to assist in getting the property ready.

Staging involves small or large changes in the appearance of the house to draw the attention of buyers to certain features. It could be as simple as adding throw pillows to the couch, mirrors on the walls, or the creative use and placement of flowers, plants, loveseats, rugs, baskets or myriad other objects. Stagers will typically try to accentuate the positive aspects of an area by using the furniture and accessories already in the home.

Certain types of inspections may also be required in your area. It's a good idea to have a home inspector do a preliminary check of your home. Your agent can advise you on how to prepare for the home inspection so that it's as painless as possible. All repairs don't necessarily have to be completed before a sale, but any structural damage should be fixed as soon as possible. Any known material defects, however, must be disclosed to prospective buyers.

Advertising

Let your agent take the lead in this area. Their extensive experience in marketing strategies will greatly benefit you. The agent will provide a marketing plan for the property that includes Multiple Listing Service (MLS) exposure, newspaper ads and signage for your yard as an absolute bare minimum. Covering all the bases, the better agents may also use open-house showings, flyers, direct mailings, and virtual tours by way of internet marketing. They might even suggest inclusion on a local real estate show and real estate magazines. Depending on the market, however, this could be either a plus or a poor use of time and money. It's fine to let the agent do what they think is best, but stay 'in the loop' and remain involved in all final decisions.

Showing the house

One of the biggest decisions you'll need to make with an agent is whether to use a lockbox or ask for appointments. Both options have merit. A lockbox is a small combination-code box placed on the front door of the house. Only you and the agent will have the combination code. When the agent arrives to show the house to prospective buyers, he or she will use the door key that you've placed inside the lockbox to access your home.

You can choose to have the home shown by appointment only. This choice is usually made by homeowners who wish to be notified because there are times that they don't want the house available for showings. If appointments are the option you choose, be sure to let potential buyers know this by posting it on the signage in the yard along with a contact phone number.

Unfortunately, the problem with appointment-showing is that buyers aren't always available at times that are convenient for the seller. An agent will spend less time on the showing aspect of the marketing strategy if there are too many time constraints involved with a given property. A lockbox, on the other hand, is useful for showings at any time.

Whether it's a showing for two people or an open house, the agent must contact you to let you know of their intention to show the house. If you're at home, you'll probably want to go out for awhile. If you're already away, the notification is a courtesy so that you'll know when it's okay to return to the house.

Valuables of any kind should be locked safely away. This includes all medicines and cash in plain sight. At an open house, many people will be wandering through your home. Some of them will be interested in the buying the property; others, on the other hand, may just be interested in your property. You can greatly reduce the risk of being burgled after the showing by hiding your valuables.

On the day of the open house or showing, be sure to remove all pets from the home. It's often difficult to sell a home where pets have lived, especially if the potential buyers have no pets. Have a relative or friend pet-sit for a few hours, or give Rover a mini-vacation at a doggy-spa for the day. Young children should also have a sitter for the day (though probably not at the doggy-spa). They are lovable and cute, but they may also inadvertently say something that they shouldn't to a potential buyer.

Negotiating the contract

Agents typically do the legwork and 'run interference' here. They take charge of opening escrow accounts and obtaining any documents that the potential buyer might need, such as neighborhood association rules and regulations or condo bylaws. Your agent will also talk directly to the buyer or the buyer's agent (if they have representation). But you, as the seller, are by no means out of the loop. The agent can make recommendations, but the decision to accept any offer is ultimately up to you. You also have the right to counteroffer. Your agent can assist in this area and answer questions about the use of contingency offers.

A contingency offer is one in which the sale of the property is dependent upon something else happening. Both buyers and sellers can also ask for contingencies. For example, the buyer may require that the seller be moved out of the house by the time he or she wants to move in, usually at the time of closing. Or, if the seller thinks that there will be problems locating a new home, he or she can add a contingency that the home be sold to the buyer only when a new residence is found by the seller.